EVOLUTION OF REGIONAL INTEGRATION

1. EVOLUTION OF REGIONAL INTEGRATION Regional Integration/Development Nexus Caribbean Studies Antigua State College 7th March 2011 9:30-10:30am

2. PRESENTATION OUTLINE • What is Integration? • The Objectives of the Regiobal Integration Process in the Caribbean. • What is Development? • Regional Integration /Development Nexus • Challenges • Status of the Integration Process in the Region • Implications for other International Agreements • Conclusion

3. What is Regional Integration? • Regional integration is a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. ...

4. Regional Integration Regional integration initiatives, according to Van Langenhove, should fulfil at least eight important functions: • the strengthening of trade integration in the region • the creation of an appropriate enabling environment for private sector development • the development of infrastructureprogrammes in support of economic growth and regional integration • the development of strong public sector institutions and good governance; • the reduction of social exclusion and the development of an inclusive civil society • contribution to peace and security in the region • the building of environmentprogrammes at the regional level • the strengthening of the region’s interaction with other regions of the world

5. Regional Integration in the Caribbean • Evolution of Regional Integration

6. Regional Integration in the Caribbean • West Indies Federation • Carifta • Caribbean Community (CARICOM) • CARICOM Single Market and Economy (CSME) • OECS – OECS Economic Union

7. Objectives of the Integration Process in the Caribbean • Improved standards of living and work; • Full employment of labour and other factors of production; • Accelerated, co-ordinated and sustained economic development and convergence; • Expansion of trade and economic relations with third States; • Enhanced levels of international competitiveness; • Organisation for increased production and productivity; • The achievement of a greater measure of economic leverage and effectiveness of Member States in dealing with third States, groups of States and entities of any description;

8. Objectives of the Integration Process in the Caribbean • Enhanced co-ordination of Member States' foreign and [foreign] economic policies; and • Enhanced functional co-operation, including :– • more efficient operation of common services and activities for the benefit of its peoples • accelerated promotion of greater understanding among its peoples and the advancement of their • social, cultural and technological development; • intensified activities in areas such as health, education, transportation, telecommunications.

9. What is Development • A basic perspective equates development with economic growth. • The United Nations Development Programme uses a more detailed definition- development is 'to lead long and healthy lives, to be knowledgeable, to have access to the resources needed for a decent standard of living and to be able to participate in the life of the community.'

10. Regional Integration/Development Nexus • Alternative Development Model – An alternative model or paradigm to mainstream development thinking. Alternative development has been concerned with introducing alternative practices and redefining the goals of development and the path taken to arrive at them.

11. Regional Integration/Development Nexus • Deepening Trade Liberalization – The elimination of trade barriers , has deepened liberalization commitments among partners, lowering average levels of protection and increasing competition in our economies. • Broadening the Scope of Liberalization Disciplines – Agreements have moved beyond goods trade to effectively incorporate new disciplines in services, intellectual property rights, investments, and other issues of macro economic coordination.

12. Regional Integration/Development Nexus • Creating Trade – Generates completely new trade among its members. • Attracting Foreign Direct Investment – Creation of regional markets with a recognizable trademark has been a tool for distinguishing an area and its nations from other developing countries.

13. Regional Integration/Development Nexus • Economic Transformation – Opportunities for greater specialization in differentiated products, new investments, corporate alliances , new export experience, competitiveness and progressive completion of local markets in finance, labour and technology. • Signaling and Locking-in of Structural Reform Commitments – Establishing legally binding liberalization and policy coordination arrangements , regional integration signals to the private sector the commitment to the new market-based reforms

14. Regional Integration/Development Nexus • Geopolitical Tool – Effective organizing and joint negotiation enhances the bargaining power beyond that which each country could have expected to achieve individually. • Enhanced Regional Cooperation – Open economies, greater regional trade and investment have fostered much cooperation.

15. CHALLENGES • Diversity among Members : • size • level of development, • commitment to the integration process • Un-evenness in intra-regional trade

16. Status of the Integration Process • Signing, and implementation of the provisions of the CARICOM Single Market and Economy. • Signing of the OECS Economic Union Treaty.

17. Implications for Other International Agreements • Use of International Agreements as tools of development.

18. CONCLUSION • Regional integration has provided a backdrop against which devlopment policy in the has been conducted, and can continue to be conducted. • This concept is deeply embedded in the regional consciousness, that any conception of development, which downplays it is considered to be inappropriate to Caribbean needs, or even disloyal to Caribbean values.